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Section 3.1 International trade (notes)

Section 3.1 Overview

The story running through this section is quite logical and it may help you to be aware of this story:

1. There are clear benefits to countries from free trade
2. This can be proved by the theory of comparative advantage (HL only)
3. So much so that a world-wide organisation exists to encourage free trade - WTO
4. But many countries implement policies that reduce free trade - protectionism
5. So why do they do this?
- Reasons for protectionism
4. How do they do this? - protectionist policies

...And now Letīs do Some Economics - Why do countries Trade?